Correlation Between AGRICULTBK HADR25 and Granite Construction
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 and Granite Construction at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AGRICULTBK HADR25 and Granite Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Granite Construction, you can compare the effects of market volatilities on AGRICULTBK HADR25 and Granite Construction and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AGRICULTBK HADR25 with a short position of Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and Granite Construction.
Diversification Opportunities for AGRICULTBK HADR25 and Granite Construction
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICULTBK and Granite is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction and AGRICULTBK HADR25 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AGRICULTBK HADR25 YC are associated (or correlated) with Granite Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Construction has no effect on the direction of AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and Granite Construction go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR25 and Granite Construction
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.11 times more return on investment than Granite Construction. However, AGRICULTBK HADR25 is 1.11 times more volatile than Granite Construction. It trades about 0.19 of its potential returns per unit of risk. Granite Construction is currently generating about -0.11 per unit of risk. If you would invest 1,150 in AGRICULTBK HADR25 YC on September 19, 2024 and sell it today you would earn a total of 70.00 from holding AGRICULTBK HADR25 YC or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. Granite Construction
Performance |
| Timeline |
| AGRICULTBK HADR25 |
| Granite Construction |
AGRICULTBK HADR25 and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR25 and Granite Construction
The main advantage of trading using opposite AGRICULTBK HADR25 and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 position performs unexpectedly, Granite Construction can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Granite Construction will offset losses from the drop in Granite Construction's long position.| AGRICULTBK HADR25 vs. The Toronto Dominion Bank | AGRICULTBK HADR25 vs. Superior Plus Corp | AGRICULTBK HADR25 vs. SIVERS SEMICONDUCTORS AB | AGRICULTBK HADR25 vs. NorAm Drilling AS |
| Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |